Address details are the defining criteria for employee and employer taxation in the United States. It is important to use appropriate address details for correct tax deductions. Payroll administrators manually validate address details of employees to identify the taxation city for the address. If the taxation city is different from the city associated with the mailing address, then the payroll administrator adds the taxation address. In addition, the calculation of school district tax is determined by the school district code available in the employee county or city tax record.
Oracle US Payroll integrates with Vertex to optionally automate address validation using the Vertex address validation web service and to determine the correct taxation address. When an address is validated using Vertex Web Services, the Vertex response also includes school district details applicable to an address. This feature helps payroll administrators with employee records that are associated with states that have school district taxes such as Kentucky, Ohio and Pennsylvania.
For information on how to enable address validation using Vertex Web Services, see: Enabling Address Validation Using Vertex Web Services
When the Vertex Web Services address validation feature is enabled, Oracle US Payroll validates:
The person's primary address details available in the:
Address window (People)
Address window (FastPath)
Enter Employees window (Maintain Using Templates)
Maintain Employees window (Maintain Using Templates)
Main Address region, Personal Information page (Employee Self-Service responsibility)
The location address available in the Location window.
Note: Address changes in any other Oracle HRMS windows or self-service pages are not validated.
Attention: The Vertex Web Services address validation feature is initiated if the address details such as Address Line, City, County, State or Zip Code are changed. If the Telephone or Mobile Number is updated, then the address validation is not initiated.
In the following description, the term user indicates a payroll administrator for Oracle US Payroll and an employee for self-service.
Oracle US Payroll compares user entered address details and taxation address details with the details returned by the Vertex Web Service. If there is a difference between these two addresses, then the application alerts the user.
The application gives the user the option to choose between the address returned by the Vertex Web Service and the existing address. If the user chooses to use the address returned by the Vertex Web Service, then Address Details and Taxation Address will be populated with the Vertex returned information. Otherwise, the application retains the user entered address details.
It is possible that some addresses may differ in "Address" details and some may differ in "Taxation Address". When the address details are validated, the application first displays the recommendation for the "Address" details. Next, the recommendation for "Taxation Address" is displayed. The user can chose or ignore the Vertex recommendation for Address and Taxation Address separately. When Multiple Taxation Addresses are returned by Vertex for an address, even if the entered taxation address matches one of the recommended addresses, both are displayed to the user so that they are aware of the scenario that multiple taxation addresses are returned for the current address.
If Vertex returns an error for the existing address details, then the application displays the error details so that the user can further review the address details.
If address validation does not occur due to incomplete or incorrect setup, then the application displays a warning so that the user can review the setup to ensure successful validation. Users can still continue to save their address even if the validation is unsuccessful.
The application saves the status of the address validation. Address details are validated if the payroll administrator enters a new address or updates an existing address. When address details are updated, the application determines whether the actual address details or other information such as a telephone number are being updated. Address validation is performed only if there is actual address change. If an address was not validated earlier, then it will be validated by the Vertex web service.
Payroll administrators can run the Validate US Addresses using Vertex Web Services concurrent process to validate addresses in bulk. See: Running the Validate US Addresses using Vertex Web Services Program
If an approval or notification mechanism is set up for self-service updates, then the payroll administrator or manager receives a notification on the address change.
In the event Vertex Web Services goes down or if the setup is incorrect or corrupted, Oracle US Payroll will be unable to validate address details using Vertex web services. Payroll Professional users will be given a warning about the situation. However, no such warning is given to employees who use self-service to update their address details. Instead a notification will be sent to the employee's designated HR/Payroll Representative about the unavailability of Vertex Web Services along with any error details. If Vertex Web Services become available once more, that is, Vertex web services are restored and the details entered by the employee are validated successfully, then another notification will be sent to same designated HR/Payroll representative indicating Vertex web services availability.
The following sections explain how person address and location address validation occurs in Oracle HRMS and Oracle SSHR.
The US-specific Address window has the provision to capture the taxation address if the details specified in the Address region are different from the taxation locality. Only the primary address is validated by Vertex Web Services as this is critical for tax calculation. See: Entering People's Addresses at Sites with Oracle Payroll
Add or Update Person Primary Address: When a new primary address is added or an existing primary address is updated, the address details will be validated. If there is an address update, then before validating the address, the application determines the type of address change. For example, has an address line, city, county, state or zip code changed or has other information changed, such as telephone number? Validation will be occur only if there is a change to the actual address details.
Validation of existing address: It is possible that some existing addresses have incorrect details or incorrect taxation address details. To ensure that existing addresses in the system are also validated, validation occurs when they are accessed using the Person Address window. The application displays a message about Vertex address validation.
The following sections explain the different scenarios during address validation:
Setup errors: During address validation, the application displays the following errors messages if it detects any incorrect or incomplete setup:
a. Vertex credentials are incorrect: The application displays a Login Error message if the login to Vertex Web Services is unsuccessful due to incorrect or missing user ID and / or password.
b. Vertex credentials are incorrect: The application displays a Login Error message if the login to Vertex Web Services is unsuccessful due to incorrect or missing user ID and / or password.
c. Proxy details are not set: The application displays a Connection Error message that proxy related profile options must be set correctly.
Vertex returns an error for the entered address: Vertex may display an error for the user entered address indicating that the entered Street Address or Postal Code is not valid. In such scenarios, the application displays the error returned by the Vertex Web Service so that the user can correct their address. If a user feels that the address details provided by them are correct, then they can ignore the Vertex response.
Vertex returns an address different from the user entered one: If Vertex returns an address different from the user entered one, then the user will be informed about the difference and provided with an option to choose between the Vertex returned value and the user entered value.
Address details entered without the Taxation Address, when required: When only address details are entered and no taxation address is present, the application displays a Vertex recommended Address message with an option to save the Vertex
Address details entered with the Taxation Address: When address details are entered along with taxation address, the application displays a Vertex recommended Address message if Vertex returns a different taxation address. The user can choose to save the recommended address or click No to retain the user entered Taxation Address.
Address for which multiple taxation addresses are returned: When Multiple Taxation Addresses are returned by Vertex for an address, even if the entered taxation address matches one of the recommended addresses, both are displayed to the user so that they are aware of the scenario that multiple taxation addresses are returned for the current address.
Feedback for address validation: When address validation occurs for primary address details in the Person Address window, the application displays the following feedback for those addresses not previously validated by Vertex web services:
a. Feedback for address validation: When address validation occurs for primary address details in the Person Address window, the application displays the following feedback for those addresses not previously validated by Vertex web services:
b. In the case of address details entered with the Taxation Address and if Vertex returns the same address, then the application displays a confirmation message that the address validation is complete and that the Vertex recommended address matches the entered Taxation Address.
Payroll administrators can add or update person addresses using People Management Templates. Address validation using Vertex Web Services will be performed when the person address is created or updated using the Enter Employees or Maintain Employees templates and the user will be provided with any Vertex recommended address. For more information, see: Features of Address Validation Using Vertex Web Services. Note that during address validation, recommendation for Taxation Address will be displayed only in the Person Address window. The People Management templates will display only the recommendations for the "Address". When an address which was saved in the People Management template is opened in the Person Address window, then this address will be validated and taxation address recommendations are displayed.
Employees can update their address details using the Main Address region in the Personal Information self-service page. When an employee updates the address details, Vertex Web Services validates address details and displays a warning to the user if a correction is required. The application presents an option to either Ignore the recommended address or Replace the address with the recommended address. If Replace is selected, then the existing address will be replaced with the Vertex recommended address. If Ignore is selected, then the existing address is saved and Vertex recommendation is ignored. If Vertex cannot locate the address entered, then the application displays a message that the entered address could not be located.
The self-service page does not have fields to capture the "Taxation Address". The recommendation provided by Vertex on Taxation Address is not displayed to the Self-Service user as they might not be aware of the taxation requirements of their jurisdiction. For such address changes, the payroll administrator can run the Validate US Addresses using Vertex Web Services concurrent program to validate all the addresses modified through self-service. They can also validate the addresses using Person Address window, if the number of addresses updated are one or two, instead of running the concurrent program.
When address details entered in Oracle HRMS and Oracle SSHR are passed to Vertex Web Services, Vertex Web Services provides necessary corrections to street address details along with the taxation details. Users can choose to utilize the Vertex recommended Street Address or continue to save the details that they entered.
The Location Address window for the US localization has a provision to record the taxation details of the address. For more information on how the location address validation feature works, see: Features of Address Validation Using Vertex Web Services.
When address details are validated using Vertex Web Services, then along with taxation details, the applicable School District is returned. When Vertex returns "School District" information for an address, then the School District code will be added to the City tax record automatically. The School District code will be added only if there is no School District already entered for the Employee tax records. For Pennsylvania, School District code will be added even if the School District code is already present for some other City in that state.